Japan company registration is usually completed by a corporate services firm based in Japan. The Japanese firm liaises with the relevant Japanese government authorities, including the Ministry of Justice, to complete Japan company registration. Official government fees for Japan company registration are US$5,570, making it a much more expensive jurisdiction than almost any other in Asia.

The majority foreign investors in Japan choose to register a Godo Kaisha, Japan's version of the limited liability company. Through a Godo Kaisha, foreign investors are able to i) open a Japan corporate bank account ii) obtain Japanese residence and employment visas for expatriate staff and their families and iii) lease office premises in Japan.

However, Japan experiences high business costs. For example, in KPMG’s 2008 Competitive Alternatives Study, which provides a comparison of business costs in G7 countries, Japan is the 2nd-most expensive country in which to conduct business, after Germany. Average overall business costs are 6.9% higher than in the USA. Examples of the high costs of doing business include:

i) Japan is the 2nd most expensive location for research and development (R&D) activities in the G7, after Germany. R&D costs in Japan are 5% higher than in the USA;

ii) Japan is the most expensive manufacturing location in the G7. Average manufacturing costs are 6% higher in Japan compared to the USA.

Hiring expatriate staff in Japan is also pricey and time consuming. For example, to obtain an Investor/Business Manager Visa after Japan company registration, the company must i) invest at least 5 million yen (US$46,400) in Japan ii) employ at least 2 full-time employees in Japan and iii) have office premises in Japan. To apply for an Investor/Business Manager Visa, an application for a Certificate of Eligibility is first submitted to a Regional Immigration Bureau in Japan. A visa application is then submitted to the Ministry of Foreign Affairs in Tokyo.

Furthermore, the cost of living in Japan is high. According to Mercer Human Resources' 2010 Cost of Living Survey, Tokyo is the world’s 2nd most expensive city, and Osaka the world’s 6th most expensive city. The Economist Intelligence Unit ranked Tokyo the world’s most expensive city for 14 consecutive years until 2006.